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2013 Vietnam Telecommunications Services Report

  • ID: 2393869
  • Report
  • January 2013
  • Region: Vietnam
  • 75 Pages
  • Bien Ngoc Nguyen
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  • Cmc Telecom
  • Fpt Telecom
  • Gtel
  • Hanoi Telecom
  • Saigon Postel (Spt)
  • Viettel
  • MORE
Which industry has been contributing the most to Vietnam's economic growth, one might ask. It could be oil and gas, agriculture, textile, or anything else, but it cannot be denied that the telecommunications industry used to be a key driver for the whole economy. While the IT industry has made a significant contribution to the country's GDP within the past several years, the telecommunications industry seems to have fallen behind. While Vietnam is now ranked among the most attractive destinations for IT outsourcing and FDI companies such as Samsung, Nokia, Canon, Intel, Foxconn, and Gemtek Technology have increased their commitment and investment in Vietnam, foreign investors such as SK Telecom and VimpelCom have tried to find ways to exit and Hutchison Telecommunications have been struggling with intensified competition. Vietnam lacks strategic investors in the sector while local players such as Viettel and VNPT are seizing more than 80% of the market share and functioning as an oligopoly. There have been signs that such relationships are violating the competition law while ruining customers' benefits.

2011-2012 was a busy period for the telecommunications sector in Vietnam. The telecommunications industry has left its hot growth stage to dig deeper in the saturated area. One can see that there will be no more leapfrogging in revenue streams and the number of subscribers. Operators have to maintain or increase ARPU by introducing more new applications and value-added services and at the same time they have to reduce the frequency and strength of promotion campaigns. This year was also a starting point for an unavoidable trend of industry consolidation and restructuring to assist the market to become more attractive and competitive. EVN Telecom was merged into Viettel. VNPT is about to choose proper solutions to meet new regulation of not owning more than 20% of two networks at the same time. The domestic market seems to be narrow so after Viettel, other Vietnamese operators have started to invest in overseas markets.

As a strategic document, the report provides readers with the big picture about Vietnam, regulatory and legal framework relevant to the telecommunications industry, extensive analysis on the licensing and investment framework, extensive analysis on forms of foreign investment and market entry, on major challenges and opportunities of specialized telecom areas, especially, mobile and broadband as these are two sectors that are the driving forces of the industry, and information on key major companies.
Note: Product cover images may vary from those shown
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  • Cmc Telecom
  • Fpt Telecom
  • Gtel
  • Hanoi Telecom
  • Saigon Postel (Spt)
  • Viettel
  • MORE
1 Executive Summary

2 Vietnam At A Glance

3 Regulatory And Legal Context
3.1 Telecommunications Regulation In Vietnam
3.1.1 Basis
3.1.2 Key Government Agencies
3.1.3 Historical Development Of Regulation And Market Liberalization
3.1.4 The New Telecommunications Laws And The Way Forward
3.1.5 Tariffs
3.1.6 Interconnection And Shared Infrastructure Issues
3.1.7 Scarced Resources, Numbering Plans And Spectrum
3.1.8 Universal Telecommunications Services Fund
3.2 Telecommunications Licensing Framework
3.2.1 Telecommunications Licenses
3.2.2 Basic Principles For Telecommunications Licensing
3.2.3 Criteria For Being Licensed
3.2.4 Fees Against Commercial Rights Granted Under The Licenses

4 Investment Framework In Vietnam Telecom
4.1 Legal Basis
4.2 Forms Of Foreign Investment
4.3 Business Cooperation Contract (Bcc)
4.4 Join Venture Company (Jvc)
4.5 Equity Participation
4.6 Merger And Acquisitions (M&A)
4.7 International Motivation And Influence - Prospects For Privatization And Liberalisation Of The Telecom Market

5 Telecommunications Services Market In Vietnam
5.1 Overview
5.1.1 Challenges
5.1.2 Opportunities
5.2 Mobile Communications
5.2.1 Market Overview, Pioneer And 2G Networks
5.2.2 3G Networks
5.2.3 Potentials For 4G
5.2.4 Mobile Tariffs, Interconnection Charges, And Shared Infrastructure
5.2.5 Mobile Contents And Smart Phones
5.2.6 Mvno And Mvne
5.2.7 Conclusions
5.3 Fixed Line Telephony
5.4 Voip Services
5.5 Internet And Capacity Services
5.5.1 Satellite Communications
5.5.2 Undersea Cables

6 Key Telecom Companies
6.1 Vnpt
6.2 Viettel
6.3 Saigon Postel (Spt)
6.4 Vtc
6.5 Hanoi Telecom
6.6 Gtel
6.7 Fpt Telecom
6.8 Cmc Telecom

Table Of Figures

Figure 1: Vietnam'S Real Gdp Growth Rate (2000-2012)

Figure 2: FDI In Vietnam (2000-2008)

Figure 3: FDI In Vietnam (2009-2012)

Figure 4: Historical Development Of Regulation And Market Liberalization

Figure 5: Fixed-Lines Prefixes Assigned To Operators

Figure 6: Prefixes Assigned For Mobile Operators

Figure 7: Major Differences Between Forms Of Foreign Investment Vehicles

Figure 8: List Of Business Coooperation Contracts In Vietnam

Figure 9: Telecommunications Services Revenues 2006-2012

Figure 10: Telecommunications Services Revenue Structure (2012)

Figure 11: Companies' Revenues In 2011 And In 2012 (Estimated)

Figure 12: Telecommunications Companies In Every Sector

Figure 13: Trend Of Smart Phones Vs. Regular Phones

Figure 14: Vietnam Mobile Telecommunications Development History Till 2010

Figure 15: Mobile Subscribers In Vietnam

Figure 16: Market Share Of Mobile Telecommunications Sector By Late 2012
Figure 17: History Of Arpu For Mobile Telecommunications Services
Figure 18: Bands Being Used By Mobile Operators

Figure 19: Imt-2000 Spectrum Assignment For 3G Networks In Vietnam

Figure 20: Financial Capability Of Vietnamese Operators In The 3G Beauty Contest

Figure 21: Bands On Plan For Future Use (4G)

Figure 23: Fixed Line Subcribers In Vietnam

Figure 24: Basic Statistics Of Vietnam Voip Termination Services

Figure 26: Prefixes Assigned To Voip Services Providers

Figure 27: Statistics On Internet Development In Vietnam Up To Late 2012

Figure 29: Internet Penetration In Major Cities

Figure 30: Isp Market Share By Late 2012

Figure 32: History Of Vnpt Revenues

Figure 33: Viettel Revenues

Figure 34: Spt Revenues
Note: Product cover images may vary from those shown
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- Vnpt
- Viettel
- Saigon Postel (Spt)
- Vtc
- Hanoi Telecom
- Gtel
- Fpt Telecom
- Cmc Telecom
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown